Trade Openness and Human Capital Investment in Nigeria (Published)
Successive administrations in Nigeria have developed a number of programmes and policies (Universal Basic Education (UBE), National Immunization Coverage Scheme (NICS), Midwives Service Scheme (MSS) and Structural Adjustment Progranme (SAP) etc.) aimed at harnessing the positive influence of trade openness on human capital investment in the country. In spite of these, human capital in Nigeria is grossly under developed. This paper examines the impact of tr\ade openness on human capital investment in Nigeria between 1981 and 2020. The study employed Vector Auto Regression (VAR) modeling techniques for the analysis. Human capital investment was proxied by total government expenditure in health and education (dependent variable) while trade openness was measured by trade openness index (explanatory variable). Per capita electricity consumption and exchange rate served as check variables. Human capital investment showed strong endogenous impact (strong influence) on its self while trade openness and per capita electricity consumption exhibited strong exogenous impact (weak influence) on human capital investment throughout the forecast period. The study recommended that, since trade openness in Nigeria is crude oil centered, government should invest more revenue from the sales of crude oil in human capital development for trade openness to have any significant impact on human capital investment in Nigeria.
Keywords: Capital, Human, Investment, Trade, openness
Economic Integration, Incentives and Non-Oil Export Dynamics in Nigeria: An Empirical Evidence (Published)
This study is a response to the under-performing trend in the non-oil sector of Nigeria which is supposedly a catalyst for massive industrialization and rapid development concerns in a less developed country such as Nigeria. Arguments bordering on the perceived plausibility of trade liberalization and government incentives vis-à-vis non-oil export performance were empirically tested using contemporary econometric techniques of unit root test, co-integration test and error-correction mechanism. Results from the tests conducted revealed a one year positive lag relationship between variables such as foreign private investment, exchange rate, gross domestic product and non-oil export growth. Contrary to theoretical expectation, an inverse relationship was found to exist between a one year lag in agricultural credit guarantee scheme fund and non-oil export performance while, world gross domestic product exerted no significant relationship with non-oil export growth in Nigeria. However, the error correction model revealed a slow speed of dynamic adjustment from short-run to long-run equilibrium and as such, the study recommended among others, a re-examination of the agricultural credit guarantee scheme fund to ensure a positive contribution to non-oil sector development, increasing incentives that stimulate non-oil investment and also maintaining a favourable exchange rate. These policies, if implemented, will assist in unlocking the existing potentials in the Nigerian non-oil sector.
Keywords: Incentives, Non-Oil Exports, economic growth, openness